Page 12 - ARUBA TODAY

A12 WORLD NEWS
Friday 22 december 2017

Cuba: Puerto Rico fears economic

Leadership to remain through April downturn with tax overhaul

By ANDREA RODRIGUEZ By DANICA COTO, Associ- move some operations to
MICHAEL WEISSENSTEIN ated Press another country, dealing
Associated Press SAN JUAN, Puerto Rico a blow to this island mired
HAVANA (AP) — Cuba an- (AP) — The sweeping fed- in an 11-year-old recession,
nounced Thursday that its eral tax rewrite approved economist Jose Caraballo
current leadership would Wednesday outraged of- said. Worst case, he said,
stay in power until April ficials in Puerto Rico, who some companies would
2018, a clear signal that said it threatens to crush leave all together as Puer-
Raul Castro will remain as the backbone of the is- to Rico struggles to attract
president two months lon- land’s economy at a time new investment.
ger than expected. when they need substan- “It’s going to have a di-
Castro, 86, had said that tial help recovering from rect effect on Puerto Rico’s
he planned to step down Hurricane Maria. budget, which is already in
in February at the end of The bill approved by the a delicate situation,” Cara-
a months-long political Cuba’s President Raul Castro watches the Mayday march at Republican-controlled ballo said in a phone inter-
cycle in which voters and Revolution Square in Havana, Cuba. Cuba’s National Assembly House and Senate con- view.
government officials pick has extended its term by two months, until April 2018, a signal tains a 12.5 percent tax on Puerto Rico officials say
the members of local, pro- that Raul Castro will remain in the presidency longer than intangible assets that could they are looking for some
vincial and national as- previously announced. Castro had said that he expected to affect dozens of U.S. manu- relief in upcoming federal
semblies and the members leave the presidency in February. facturing companies op- measures still being de-
of the powerful council of (AP Photo/Desmond Boylan) erating in the U.S. territory. bated. Jenniffer Gonzalez,
state. duction of private enter- dent last year. Puerto Rican officials ac- Puerto Rico’s non-voting
The National Assembly an- prise into Cuba’s centrally Trump re-imposed restric- cused some federal legis- representative in Congress,
nounced through state planned economy, while tions on Americans’ ability lators of turning their backs told the AP that the tax
media that its current term maintaining a single-party to travel to Cuba, cutting after they visited the U.S. overhaul does allow island
would run through April 19 system and tight govern- into a tourism boom that territory post-hurricane and officials to create special
instead of ending in Feb- ment control of virtually all had helped buffer the is- pledged their help. zones to attract investors,
ruary because the impact aspects of life on the island. land’s economy against a “Not only is Congress hurt- and noted that controlled
of Hurricane Irma in Sep- Castro is expected to retain decline in trade with social- ing the people of Puerto foreign corporations in
tember had delayed the his position as head of the ist ally Venezuela. Rico in their greatest time Puerto Rico have ways to
start of the political cycle. Communist Party, which The Cuban government of need, but they’ve gone avoid paying the 12.5 per-
The National Assembly’s sets the parameters of gov- said Thursday that after a back on the policy they cent tax.
announcement did not ernment policy and overall recession in 2016, the econ- established,” Gov. Ricardo However, Gonzalez said,
explicitly say that Castro direction of the country. omy grew 1.6 percent this Rossello recently told The the bill falls short of what
would remain until April but Castro took over from his year, a better performance Associated Press. Puerto Rico was expecting.
the current council of state brother Fidel Castro after than expected due largely Manufacturing accounts “The focus should be on the
is also remaining until then, the revolutionary leader to a 4.4 rise in income from for nearly half of the is- private sector,” she said.
meaning Castro will retain and founder of the current tourism, along with smaller land’s economy and a “There’s still room for Puerto
his position as its head bar- Cuban system fell ill in 2006. increases in transport, com- third of government reve- Rico to obtain tools for eco-
ring extraordinary action Raul Castro began a series munications, agriculture nues, generating hundreds nomic development.”
to replace him. The an- of domestic reforms that in- and construction.q of thousands of jobs. Con- Rodrigo Masses, president
nouncement did not men- cluded the spread of inter- trolled foreign corporations of Puerto Rico’s Manufac-
tion any such action. net and cellphone access, that make up the bulk of turing Association, said in a
Many Cubans and outside freedom to travel for most Puerto Rico’s manufactur- phone interview that while
observers expect Castro Cubans and the ability to ing sector and generate some companies might be
to be replaced as presi- buy and sell cars and hous- more than $2 billion a year able to absorb the impact
dent by First Vice President es. He also oversaw the re- for the government are the of the 12.5 percent tax, it
Miguel Diaz Canel, 57, who establishment of diplomat- ones affected by the new still represents a challenge
has promised to continue ic relations with the United tax. for them.
Castro’s policies. Those States, a detente that was In a best-case scenario, “We’re going to be seeing
policies include allowing shaken by the election of those companies would re- that in upcoming months,”
the slow and limited intro- Donald Trump as U.S. presi- duce production here and he said.q